Thanks boss: Workers to get only 2.9% wage hike

Inflation hits supposed 4% pay hike.

Singapore employees would definitely be shaking their heads as salaries are forecast to uptick only at 2.9%, down from the supposed 4% if not for inflation. According to a study by ECA International, the rising inflation means that staff in Singapore will see a decline in real wage increases next year.

"With Singapore transitioning from 0.3% deflation in 2016 to 1.1% inflation in 2017, real wage increases for employees will take a hit. The generous 4.3% average real wage increases enjoyed in 2016 will not be seen in 2017. Instead, real wage increases are forecast at 2.9%," the study explained.

ECA International Asia Director Lee Quane cited that the open trade-dominated economy of Singapore is withstanding the deceleration growth in China reasonably well, however, it is still experiencing a slowdown in itself.

“China's downturn is reducing demand and trade throughout the region and this is having an impact on locations such as Singapore, with rising inflation forecast next year. " Quane argued.

Quane pointed out, however, that Singapore's 2.9% increase is still aboe the average of 2.6% across the rest of the Asia-Pacific region. Malaysia would see a similar pattern emerging, as employees are forecast to receive a real wage increase of 2%, down from 3.1% hike experienced in 2016, due to rising inflation.

"As is the case with Singapore, the regional economic slowdown is contributing to rising inflation, which is why employees based here will be worse off next year than in 2016”, he stated.

The study analysed current and projected salary increases based on information collected from 260 multinational companies across 72 countries.